Senior needs often a tough sell, not as compelling with donors as kids, homeless

Michael Karson

After relying largely on government funding for decades, two of the three congressionally created Area Agencies on Aging serving Southeast Michigan are stepping up their fundraising games. And the third is considering it.

The moves come amid a growing population of seniors in the region and state, rising demand for senior services and lack of dedicated funding for things seniors need but can't always afford, like eyeglasses, hearing aids, handrails for showers, stair lifts and transportation.

"We don't have the financial capacity to serve everyone on the (waiting) lists ... (and) we know we have a growing population of seniors," said Michael Karson, president and CEO of the Southfield-based Area Agency on Aging 1-B, which serves Oakland, Macomb, Washtenaw, Livingston, Monroe and St. Clair counties.

All three of the local AAA agencies have raised money for years to support the Meals on Wheels program for homebound seniors and the disabled on major holidays when the government doesn't support it. But their fundraising has been limited to that, until now.

"We felt this was the right time to invest in a fundraising program," Karson said.

The money AAA 1-B raises will provide unrestricted dollars to support unfunded needs, shorten waiting lists and help the agency build its reserves to ensure long-term sustainability.

The agency is starting out small, with a $150,000 fundraising goal to feed the general fund.

But Karson said it will look to increase its annual fundraising to $1 million within five years by increasing awareness of its services and engaging more corporate supporters.

Rising demand

Created by Congress in 1974 through the Older Americans Act, the national network of nonprofit AAA agencies provides service referrals and home- and community-based services to maximize the independence and dignity of older adults.

There are over 600 AAAs nationally — 16 in Michigan serving the entire state. They provide a long list of services including: elder rights information, referrals, home-delivered meals and social interaction through the Meals on Wheels program, caregiver resources, chore services, community wellness and nursing home levels of care for people who need it, in their homes. Some are based on financial need; others are not.

In 2018, nearly a quarter, or 2.4 million, of Michigan's nearly 10 million residents were age 60 and older, Data Driven Detroit's Executive Director Erica Raleigh said, citing data from the U.S. Census Bureau.

That's up from 1.9 million, or 19.5 percent of the state's 9.88 million residents, in 2010.

Area Agency on Aging 1-B, which serves the areas with the largest population of seniors in the state, assists about 120,000 people each year.

It has an additional 1,200-1,400 people on a waiting list for its programs and adds about 80 more to the list each month because it doesn't have the funding to help them, Karson said.

Some are in nursing homes and want to move back into the community. Others are discharged from hospitals and can no longer live independently, he said.

"Our goal is to keep them in their homes. Most people do better in their homes; they are very comfortable there."

Enabling seniors to age in place at home also helps keep costs lower for them and the health care system, Karson said.

To formalize AAA 1-B's fundraising operations, he has created a new grant manager position that has helped attract grants including $250,000 from the Ann Arbor Area Community Foundation, with funding from the Ralph C. Wilson Jr. Foundation, to fund outreach in Washtenaw County.

Last fall, Karson also hired a director of philanthropy to formalize fundraising through a new development department. DTE Energy Foundation has provided annual support of the holiday Meals on Wheels program for years. The agency is looking to build on that.

AAA 1-B is hoping the event will help it reach its $150,000 annual goal to help fund unmet needs such as transportation for seniors and to begin paring back the waiting list for its programs.

This year's fundraising goal is just above the $132,000 the agency raised in fiscal 2019 ended Sept. 30 and $73,000 the year before, Karson said.

AAA 1-B reported just under $55 million in total revenue for fiscal 2018, up from $50.8 million the year before. It ended fiscal 2018 with an excess of more than $769,000 and net assets/fund balances of $6.2 million.

It's operating on a budget of just over $60 million for fiscal 2020. The bulk of its revenue comes from federal and state grants and the remaining $12 million in fee-based revenue from contracts with local health systems and the VA Ann Arbor Healthcare System to provide discharge services for seniors, Karson said.

The agency has increased its reserves by $1.2 million over the past two years by identifying internal efficiencies and outsourcing private-pay aid, housekeeping, snow removal and law services. The agency also closed two locations, leaving it with locations in Southfield and Clinton Township.

Its reserves today are about $4.5 million. Karson said the goal is to get them to $10 million-$15 million.

The agency will employ several strategies, including fundraising, said Jenny Jarvis, chief communications and strategy officer, in an email.

Among other moves, it will seek additional operating efficiencies in program delivery, cut unprofitable programs, "aggressively" collect on receivables and focus on developing profitable partnerships, she said.

The reserves are meant to provide a buffer in cases of government shutdowns to ensure services continue, Karson said. They also could provide a source of loaned capital to the nonprofit for future opportunities like getting out of leases and into its own building.

Like its larger peer, the Detroit Area Agency on Aging, which serves Detroit, Hamtramck, Harper Woods, Highland Park and the five Grosse Pointes, is also stepping up its fundraising. It plans to launch a $250,000 drive in January, fund development manager DiAnna Solomon said.

"The emphasis on fundraising is a growing consideration for DAAA because of a reduction in state and federal funding due to slower population growth in our region," she said. "Yet, the needs of our constituents have not decreased."

Last year, the Detroit agency served 97,441 people. It's operating on a $77.9 million budget through federal, state and local contracts, Solomon said.

Given population declines in its area, the agency's federal funding is expected to be reduced by $500,000 per year through 2022, Solomon said.

It began raising money from its staff back in 1988 to support the holiday Meals on Wheels program, and that has been the agency's only fundraising focus ever since, Solomon said. In fiscal 2019 ended Sept. 30, it raised $250,000 for the meals program.

"It's imperative that we work harder and smarter to deliver more comprehensive services that are impactful and actually help fill the gaps," Solomon said.

"Fundraising is one of the avenues to doing that."

The Senior Alliance, or Area Agency on Aging 1-C, raises money year-round to fund the holiday Meals on Wheels program for seniors in 34 communities of southern and western Wayne County. The largest supporters of the program include DTE Energy Foundation, Ford Motor Company Fund and Greektown Casino.

The agency, which serves over 50,000 people each year on an annual budget of about $30 million, has set a goal to raise $100,000 for the program this year, said CFO and Deputy CEO Kishori Gandhi.

It reported $32.4 million in total revenue, a $1 million operating excess and just under $10 million in net assets/fund balances for fiscal 2018.

To build on the corporate sponsorships from DTE Energy Foundation, BJ's Wholesale and Beaumont Health, it's advertising on WWJ AM 950 and has posted videos online.

Like the other agencies, it's seeing unmet needs among seniors in the community. It's considered broader fundraising, but hasn't yet attempted to raise money outside of that needed to fund the holiday meals for seniors.

Fundraising for the elderly is a tough sell, CEO David Wilson said.

When it comes to seniors who are living on very limited income, "it's harder for people to accept that and make a donation ... year round."

Sherri Welch: (313) 446-1694 Twitter: @SherriWelch

Editor's note: This story has been updated to clarify that the Ann Arbor Area Community Foundation made a $250,000 grant to Area Agency on Aging 1-B with funding from the Ralph C. Wilson Jr. Foundation.